Having a good and positive credit score is very important to everyone. When you build a solid credit history and maintains a high credit score it would benefit you from a lot of things and can have a huge impact in your life now and in the future when you consider to apply for a loan, a prepaid debit card and even buying a house. Acquiring a good credit score for common things like qualifying for a loan, getting a credit card, getting a telephone and cellular service, renting a can and even getting a job. Keep in mind that your creditworthiness is the key to your financial life and success.
Buying a house with a bad credit
Your credit score helps the lenders to decide on hoe likely you are able to pay off your debts back. Credit score also helps lenders, issuers, employers and others may use it to determine how you manage your financial responsibilities. As society is becoming independent on using credit to make purchases, you should be more careful and be an observer in your own self because you might out of control in using it.
The following are the five reason why having a good credit score is important:
- It affects where you live and hoe much you pay
- It affects what you drive and your car payment.
- It can affect you on searching for a job
- It affects your ability to start a business
- It affects your monthly bills
Having your own house is a necessity for everyone and it is one of the basic needs or goals that you need to achieve in your life. And you cannot attain it if you really have a bad credit – if so, you will be facing some difficulties. If purchasing a house with a good credit is somehow difficult for others, what more to people with a bad credit? Before you buy a house you need to get prequalified or preapproved credit for your mortgage. You should really know how you can actually spend so choose only a house that you can afford. In order to get prequalified you need to present financial information to your mortgage banker. Your lender will review the financial information and soon will determine if hoe much they can lend you. If you have a bad credit, don’t worry because there are also other options for that.
- FHA Loan – to qualify for this loan, buyers will be willing to pay at least 353% of the total home cost if they have a score of 580 or higher and buyers with a score of 580 and lower, they will pay at least 10% of it.
- Private mortgage – look for a family or friend that will get you to put up thru money for you to buy a house. If you already find that someone, then you arrange how to pay the money back.
- Co-signer – if you fail to pay your mortgage on time, he or she is responsible for it.
- Making a larger down payment – this is the easiest way to qualify for a home loan with a bad credit.